Couldn't the problem of illegal access to live casino video data be solved with DRM? Evolution could provide each customer with an encryption key for each operator. This key is the only thing that allows you to see the live casino feed. This means that Evolution has precise control over it and knows how many customers are seeing the feed for each operator. This would also solve the problem in the United Kingdom. This should work better than an IP block, right?
"Although about 3 million computers get sold every year in China, people don't pay for the software. Someday they will, though," Gates told an audience at the University of Washington. "And as long as they're going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade."
Great job. I recently purchased just due to great balance sheet and pretty technicals, but your work definitely helped me to understand the business better.
During your interaction with Evo's management, do you get a sense
1) when the think the "cyber attack" situation could be somewhat resolved or at least under control?
2) what will be the impact on the Asian market in 2025 and even the long term?
It's a bit bummer that Evolution seems to be doing a poor communication about the situation, their efforts and expectation, etc. I try to understand what exactly has happened but I found it is hard to get much details.
A really comprehensive analysis, thanks Ali. Besides regulation, my main concern, as you point out, is customer concentration. That could affect EVO's pricing power but I am wondering if any of this big clients could be tempted to start their own live casino operation. I know there are many challenges to develop such operation, but a big gambling company probably have the resources to make it happen. Have you read any of their customer's calls/reports talking about that possibility?
Excellent analysis as always. Many thanks!
Thanks Ali for the great write-up!
Couldn't the problem of illegal access to live casino video data be solved with DRM? Evolution could provide each customer with an encryption key for each operator. This key is the only thing that allows you to see the live casino feed. This means that Evolution has precise control over it and knows how many customers are seeing the feed for each operator. This would also solve the problem in the United Kingdom. This should work better than an IP block, right?
"Although about 3 million computers get sold every year in China, people don't pay for the software. Someday they will, though," Gates told an audience at the University of Washington. "And as long as they're going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade."
Very good idea!
As to its technical feasibility: Your guess is as good as mine :)
Great job. I recently purchased just due to great balance sheet and pretty technicals, but your work definitely helped me to understand the business better.
Thanks, very comprehensive, with valuable (new) insights!
Great write up - very detailed and thoughtful.
During your interaction with Evo's management, do you get a sense
1) when the think the "cyber attack" situation could be somewhat resolved or at least under control?
2) what will be the impact on the Asian market in 2025 and even the long term?
It's a bit bummer that Evolution seems to be doing a poor communication about the situation, their efforts and expectation, etc. I try to understand what exactly has happened but I found it is hard to get much details.
On Q4 call, management said that they expect to solve cyber attacks before the year end.
I suspect that they also don't have clear visibility in Asia. Impossible for me to estimate...
A really comprehensive analysis, thanks Ali. Besides regulation, my main concern, as you point out, is customer concentration. That could affect EVO's pricing power but I am wondering if any of this big clients could be tempted to start their own live casino operation. I know there are many challenges to develop such operation, but a big gambling company probably have the resources to make it happen. Have you read any of their customer's calls/reports talking about that possibility?